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ST Engineering Reports Comparable Year-on-Year PBT For 3Q2015

 

FINANCIAL HIGHLIGHTS for the quarter ended 30 September 2015

 

2015

3Q

2014

3Q

Growth
%

2015

9M

2014

9M

Growth
%

Revenue ($m)

   1,500

 1,553

(3)

 4,556

  4,691

(3)

Earnings before interest and tax (EBIT) ($m)

    120.5

 142.9

(16)

 381.0

  424.6

(10)

Other income, net ($m)

     6.8

 4.7

45

32.9

 27.7

19

Finance income/
(costs), net ($m)

     12.0

 (7.6)

259

9.1

 (10.8)

184

Profit before tax (PBT) ($m)

    154.7

  151.7

2

 463.7

 483.3

 (4)

Profit attributable to shareholders ($m)

    133.3

  121.3

10

 388.2

 391.7

 (1)

Earnings per share (cents)

     4.29

   3.89

10

 12.48

 12.57

 (1)

 

  • Commercial sales constituted 66% or $1.0 billion of 3Q2015 revenue
  • Order book of $12.2 billion at end September 2015, of which about $1.4 billion is expected to be delivered in the remaining months of 2015
  • Cash and cash equivalents including funds under management totalled
    $1.4 billion
  • Advance payments from customers totalled $1.6 billion

Group 3Q2015 Unaudited Results and ST Engineering Results Presentation 3Q2015


N.B.: All currencies are in Singapore dollars

Singapore, 6 November 2015
- Singapore Technologies Engineering Ltd (ST Engineering) today announced financial results for its third quarter ended 30 September 2015 (3Q2015).  The Group posted quarterly revenue of $1.50b and profit before tax (PBT) of $154.7m.  These results are comparable to revenue of $1.55b and PBT of $151.7m in the same quarter last year.   Quarterly net profit after tax (Net Profit) was $133.3m, up 10% from $121.3m for the same quarter last year.

3Q2015 versus 3Q2014

The Aerospace sector posted revenue of $506m, up 8% from $470m a year ago due to higher engines output in the Component/Engine Repair & Overhaul business group that was partially offset by lower revenue from the Aircraft Maintenance & Modification business group.  Year-on-year PBT was flat at $63.3m due to lower gross profit as a result of fewer airframe maintenance work partially offset by lower finance cost as well as the absence of impairment of an associate.    

Revenue for the Electronics sector grew 21% year-on-year to $429m from $354m as all three business groups recorded higher sales mainly due to higher value project milestone completions and increased satellite communication product sales.  However, PBT was comparable at $49.3m against the same period last year as a result of less favourable sales mix and higher operating expenses.   

The Land Systems sector posted revenue of $319m, down 11% year-on-year from $357m mainly from lower revenue from Munitions & Weapons business group.  Against the same quarter last year, PBT of $19.8m was up 9% from $18.1m due to lower allowance for inventory obsolescence, and the absence of goodwill impairment.

Revenue for the Marine sector in 3Q2015 was $205m, dropped 39% year-on-year from $336m, and its PBT was down 51% to $15.9m from $32.7m in the same period last year due to weaker operating performance.

For 3Q2015, commercial sales contributed 66% or $1b of 3Q2015 revenue.  Cash and cash equivalents including funds under management was $1.4b after the payment of an interim dividend of $156m in September 2015.

9M2015 versus 9M2014

Group revenue for 9M2015 was $4.56b compared to $4.69b for the same nine-month period last year.  Group PBT and Net Profit were comparable at $463.7m and $388.2m respectively against the same nine-month period last year.

For the nine-month period, Aerospace and Land Systems sectors posted comparable year-on-year revenue of $1.51b and $982.5m respectively, and comparable year-on-year PBT of $205.3m and $52.3m respectively.  The Electronics sector’s revenue of $1.20b was 9% higher compared to $1.10b in the same nine-month period a year ago, and its PBT was comparable at $130.8m over the same period last year.  Year-on-year Revenue and PBT for the Marine sector dropped 27% and 22% respectively to $738.1m and $68.9m respectively for the nine-month period.
For the third quarter as well as the first nine months of 2015, the Group reported year-on-year comparable Revenue and PBT.

The Group continues to face challenges with our Aerospace sector's Maintenance, Repair and Overhaul business experiencing prolonged softness in activities. Shipbuilding performance remains weak both locally and in the US, but the diversity of our businesses and appreciation of the USD helped to cushion impact on the Group's performance.

Barring unforeseen circumstances, the Group expects FY2015 Revenue to be comparable, while PBT is expected to be lower than that of FY2014.” ~Tan Pheng Hock, President & CEO, ST Engineering

Order Book and New contracts Announced in 3Q2015

The Group maintained a healthy order book of $12.2b at the end of 3Q2015.  It expects to deliver about $1.4b of the order book in the remaining months of 2015.
For 3Q2015, the Group announced about $780m worth of contracts. Of these, $410m was from the Aerospace sector and $370m from the Electronics sector.
New wins for the Aerospace sector included heavy airframe maintenance agreements for a US airline, cabin interior modification for another US carrier, an engine component repair contract from a major East Asian airline, landing gear overhaul and exchange contracts, Super Puma transmission components repair contracts from helicopter operators in the region, an aircraft part-out contract, as well as a two-year pilot training agreement with an Asian airline.  New wins for the Electronics sector included Rail Electronics & Intelligent Transportation contracts from local and overseas customers, Satellite & Broadband Communications contracts from government, telecom and enterprise users worldwide, contracts for Intelligent Security Management System, and automated metering solutions for government agencies and commercial businesses.

ST Engineering (Singapore Technologies Engineering Ltd) is an integrated engineering group providing solutions and services in the aerospace, electronics, land systems and marine sectors.  Headquartered in Singapore, the Group reported revenue of $6.54b in FY2014 and ranks among the largest companies listed on the Singapore Exchange.  It is a component stock of the FTSE Straits Times Index and MSCI Singapore.  ST Engineering has about 23,000 employees worldwide, and over 100 subsidiaries and associated companies in 46 cities across 24 countries.  Please visit www.stengg.com for more information.

Media contact:
Lina Poa
SVP, Corporate Communications
ST Engineering
Tel: (65) 6722 1883    
Email: 
linapoa@stengg.com

 

 

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